Second Quarter Results August 2, 2018 Delivering Value. Kinross Gold Corporation
Cautionary Statement on Forward-Looking Information All statements, other than statements of historical fact, contained or incorporated by reference in or made in giving this presentation and responses to questions, including but not limited to any information as to the future performance of Kinross, constitute “forward looking statements” within the meaning of applicable securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this presentation. Forward-looking statements contained in this presentation include those statements on slides with, and statements made under, the headings “Tasiast Update”, “Advancing Our Projects”, “ 2018E Capital Expenditures Outlook”, “Tasiast Project Financing”, “Americas”, “West Africa”, “Russia”, Tasiast Phase One”, “Round Mountain Phase W”, “Bald Mountain Vantage Complex”, and “La Coipa Restart Project”, and include without limitation statements with respect to our guidance for production, production costs of sales, all-in sustaining cost and capital expenditures, permit applications and conversions, continuous improvement and other cost savings opportunities, as well as references to other possible events include, without limitation, possible events; opportunities; statements with respect to possible events or opportunities; estimates (including, without limitation, gold / mineral resources, gold / mineral reserves and mine life) and the realization of such estimates; future development, mining activities, production and growth, including but not limited to cost and timing; success of exploration or development of operations; the future price of gold “ 2018 E”, advancing ”, “ahead”, and silver; currency fluctuations; expected capital requirements; government regulation; and environmental risks. The words “assumption”, “budget”, “contemplate”, “continue”, “envisions”, “estimate”, “expect”, “feasibility”, “flexibility”, “focus”, “forecast”, “forward”, “FS”, “future”, “goal”, “growth”, “guidance”, “indicate”, “liquidity”, “momentum”, “objective”, “on schedule”, “on track”, “objective”, “opportunity”, “optimize”, “outlook”, “plan”, “position”, “potential”, “priority”, “progressing”, “project”, “propose”, “risk”, “scoping study”, or “target”, or variations of or similar such words and phrases or statements that certain actions, events or results may, can, could, would, should, might, indicates, or will be taken, and similar expressions identify forward looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic, legislative and competitive uncertainties and contingencies. Statements representing management’s financial and other outlook have been prepared solely for purposes of expressing their current views regarding the Company’s financial and other outlook and may not be appropriate for any other purpose. Many of these uncertainties and contingencies can affect, and could cause, Kinross’ actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Kinross. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward looking statements made in this presentation are qualified by these cautionary statements, and those made in our filings with the securities regulators of Canada and the U.S., including but not limited to those cautionary statements made in the “Risk Factors” section of our most recently filed Annual Information Form, the “Risk Analysis” section of our FYE 2017 and Q2 2018 Management’s Discussion and Analysis, and the “Cautionary Statement on Forward-Looking Information” in our news release dated August 1, 2018, to which readers are referred and which are incorporated by reference in this presentation, all of which qualify any and all forward ‐ looking statements made in this presentation. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward ‐ looking statements or to explain any material difference between subsequent actual events and such forward ‐ looking statements, except to the extent required by applicable law. Other information Where we say "we", "us", "our", the "Company", or "Kinross" in this presentation, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable. The technical information about the Company’s mineral properties contained in this presentation has been prepared under the supervision of Mr. John Sims, an officer of the Company who is a “qualified person” within the meaning of National Instrument 43-101. 2
Second Quarter 2018 August 2, 2018 Strong Operating Results Continued track record of meeting our operational targets • Second quarter operating results were in-line with expectations • On track to meet 2018 guidance targets 2018 Guidance (1) First Half Results Gold equivalent production 2.5 million (+/-5%) 1,255,986 (ounces.) (2) Production cost of sales $730 (+/-5%) $709 ($ per gold equivalent ounce) (2,3) All-in sustaining cost $975 (+/-5%) $926 ($ per gold equivalent ounce) (3) Capital expenditures $1,075 (+/-5%) $494 ($ millions) (1) Refer to endnote #1. 3 (2) Refer to endnote #2. (3) Refer to endnote #3.
Second Quarter 2018 August 2, 2018 Operational Highlights Chirano, Ghana Paracatu, Brazil Bald Mountain, US • Good performance in H1 • Highest quarterly • Record low cost of sales 2018 throughput of past 4 years • Continued strong • Improved cost of sales • Significant improvement in production year-over-year rainfall year-to-date Paracatu Q2 Results Chirano Q2 Results Bald Mountain Q2 Results Production Production (2) Production 121,226 52,715 71,435 (Au. Eq. oz.) (Au. Eq. oz.) (Au. Eq. oz.) Cost of sales (3) Cost of sales (3) Cost of sales (3) $858 $776 $456 ($/Au. Eq. oz.) ($/Au. Eq. oz.) ($/Au. Eq. oz.) (2) Refer to endnote #2. 4 (3) Refer to endnote #3.
Second Quarter 2018 August 2, 2018 Construction of Tasiast Phase One Complete In final stages of commissioning; first ore now through the SAG mill Click here to view completed Tasiast Phase One expansion: https://youtu.be/45eg8TEL-cg 5
Second Quarter 2018 August 2, 2018 Tasiast Update Kinross has continued to engage with the Government of Mauritania since early May following receipt of a letter stating a desire to enter into discussions with respect to Kinross’ activities in the country • Has been business as usual at the Tasiast mine and the Phase One project, where construction is now complete • Project financing has continued to progress, with strong interest from multilateral organizations and commercial banks Phase Two Update • Kinross has decided to pause the Phase Two project, in line with our commitment to disciplined capital allocation • To maintain optionality, we are analyzing alternative throughput approaches to expanding Tasiast • The completion of our evaluation of throughput alternatives, and a decision on the next steps for Phase Two, are subject to the ongoing engagement with the Government. We remain committed to capital discipline as we seek additional clarity on the matter. 6
Second Quarter 2018 August 2, 2018 Advancing Our Projects Portfolio of development projects and future opportunities progressing well Tasiast Phase One Round Mountain Phase W Bald Mountain Vantage Complex Construction complete Detailed engineering 95% complete Engineering 95% complete SAG mill in final stages of Stripping progressing well Construction is well underway commissioning Russia Satellite Deposits Fort Knox Gilmore La Coipa Restart Expect to begin stoping at Project approved in June following Initiated feasibility study; expected to Moroshka in early Q4/18 completion of feasibility study be complete H2/19 Commenced mine development at Early works initiated; permitting is Initiated scoping study on Lobo Marte ; Dvoinoye Zone 1 now complete expected to be complete H1/19 7
Strong Balance Sheet & Financial Flexibility With strong cash flow and no debt maturities until 2021, we have the financial strength and flexibility to fund our pipeline of development projects 8
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